Sunday 19 February 2017

Laing O'Rourke's Irish subsidiary dips into red as revenues plummet

Gordon Deegan

Published 10/01/2011 | 05:00

The Irish arm of construction and engineering giant Laing O'Rourke went into the red last year as revenues plunged and its workforce was cut by more than half.

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Accounts just filed with the Companies Registration Office by Laing O'Rourke Ireland Ltd show that revenues at the company last year dropped by 75.7pc from €103.6m to €25.1m to the end of March 2010.

The figures show the company made a pre-tax loss of €1m after recording a pre-tax profit of €2.8m in 2009.

The losses incurred last year resulted in the company's accumulated losses totalling €6.2m.

According to the directors, they "are disappointed with the loss for the year incurred as a result of difficult economic conditions".

The figures show that numbers employed at the firm more than halved during the year from 590 to 282 -- a loss of 308, or 52pc of its workforce, with site staff bearing the brunt of the job losses with 185 posts shed in that sector.

The job losses resulted in a reduction in staff costs of 45pc from €33.8m to €18.7m.

The firm incurred a €753,000 writedown in the value of investment properties during the year following a €2.8m write-off the previous year.

The company recorded an operating loss of €1.2m compared with an operating profit of €2.5m in 2009.

The Irish operations represent a small fraction of the group's global activities, with Laing O'Rourke being the biggest privately owned construction company in Britain.

The group recorded revenues of £4.3bn (€5bn) in 2010 -- a 15pc drop on 2009.

Irish Independent

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